Michael Nierenberg of Bear Stearns | Success Tips for Investment Managers

As CEO of New Residential Investment Corp., Michael Nierenberg is known for his innovative views on investing. With a background that spans multiple notable companies in the United States, he is an investment manager with a wealth of experience. He has been featured in online publications about notable CEOs and investment managers. One article detailed a type of real estate investment product that he works with and shared his philosophies on how to be a successful investment manager.

Michael Nierenberg on Real Estate Investments

Michael educates his clients about choices, such as REITs, which are real estate investment trusts. They may invest in mortgages or properties, and they may choose between commercial or residential. In addition to other options, there are combination investment choices that span both residential and commercial choices. During the past two decades, the residential market has become more complex and has grown. The housing market comprises more than $25 trillion in value. Because of the ever-changing needs, developing trends and market complexities, Michael encourages people to work with a skilled advisory and management team to make optimal choices. Finding the right investments can be overwhelming for individual investors. With a team of professionals who understand REITs and other investment choices, investors can stay more informed about excess mortgage servicing rights, servicer advances and other emerging financial concepts.

A History of Learning and Accomplishments

Michael is a graduate of Amherst College, and he holds a doctoral degree in mortgage-backed securities. Since the 1990s, he has served with a cancer research foundation and Lehman Brothers, and he was an integral part of the adjustable-rate mortgage development of Lehman Brothers. He also became a board member of Bear Stearns in 1994. While there, he held several roles and continually moved upward. He was co-head of structured products, head of interest rate and foreign exchange trading and co-head of mortgage-backed securities trading. In 2006, he was appointed to the Bear Stearns board of directors. During his 14 years with Bear Stearns, he helped accomplish many goals and was a notable senior leader. After that, he moved on to serve in the management committee at J.P. Morgan, and he went on to serve as the head of the global mortgages and securitized products with Bank of America Merrill Lynch in 2008.

Michael Nierenberg's Three Pillars of Success

In 2013, Michael became the CEO of New Residential. He was appointed as the chairman for the company's board in 2016. Based in New York City, New Residential is publicly traded and is listed as NRZ on the New York Stock Exchange. Michael said that his experience in a variety of markets was what helped him redefine success in investing. He explained this with examples, such as how working with a variety of companies made him value teamwork. He believes that teamwork is an overlooked priority for management firms. However, it is one that he believes is critical to capitalizing on changes in the industry. Because he feels strongly about teamwork, Michael worked hard to master his ability to work well with others and to inspire them to work together over the years. He enjoys working with a variety of talents to accomplish a common goal. Additionally, Michael enjoys mentoring younger people and helping them become effective managers.

Another aspect that affects his views on success in the world of investing is productivity. It helps the company be more efficient about using resources of all types. Since operations consume a great deal of profits in real estate investing, having a workforce that knows how to operate efficiently on all levels is critical. When everyone is productive, they have more potential to grow as professionals as well. As Michael says, productivity is a win for workers and a win for companies. It improves the self-esteem of workers and helps promote job satisfaction, which reduces turnover. For companies, long-term workers who are efficient improve the bottom line. These are the reasons why he is a strong advocate for encouraging productivity.

Diversification is the third aspect that Michael says helps promote success in the world of investing. During the last few decades, he has worked hard to master the art of diversifying. Michael says that diversity helps companies gain more profits from a wider range of sectors. It is also a valuable part of a strategy to minimize losses. His ability to see this and his ability to put ideas into actionable plans are two of the reasons why he has been an asset to Bear Stearns and to the companies he worked with in the past. Today, it makes him an asset to New Residential as well.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes